The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1887-01-13

"credits" to mean only the excess IF credits
over liabilities, and this statutory definition is
applied In listing. credits for taxation. The
court holds that the credits from which the
citizcns OF Ohio are thus allowed to deduct their
debts are Inoneyed capital In the hands Of pri-
yate individuals within the meaning OF section
621o of the Revised Statutes Of the United
States, and that 1t would be taxing bank shares
at a higher rate to not allow q similar deduction
from their valuation.
The capital and surplus of the National banks
Of the State AMOUNT 70 about S46. 800 goo. They
are taxed upon this OF about SSl OoO,0oo. A con.
disappear from the duplicate after this year II
the banks insist upon the advantage the de-
cas1oa gives them and as fnaicating tnat they
have already made application therefor to the
State Board of Equalization. It may be safely
selves Of this advantage when they list their
shares In 1887. Tn result will be not only to
embarrass the State, but to unduly burden all
Before suggesting a possible remedy, another
fact should be mentioned. The last decennial
| aPpraisement OF real estate was had at a period
high values. Since then there has been q heavy
decline. Farm property is from twenty-five "a
fifty per cent. cheaper to-day than it was then.
State, where they have not been affected by the
growth of cities or other development, are now
| value In money than any other class of property.
| In fact, the farm lands Of some Of the counties
are taxed at even more than they could be sold
for. But while this is true Of the farm lands,
the reverse is true Of the real estate of many OF
the cities of the State where there has been
great growth and development, as in some por
tions Of Cincinnati and at Cleveland, Toledo.
Columbus and many other cities that might be
named, and the valuations placed upon the real
estate Of these cities in 1880 are in the aggregate
less than fifty per cent. Of their present true
value in money, and in some cases it will not
exceed twenty-five per cent.
| The consciousness OF this lack OF uniformity,
and the consequent injustice that must result to
oil who are fairly taxed, has had much TO do
IN producing the unsatisfactory results that
have been experienced.
1t is thought that Congress will 50 amend sec.
ton 52l9 of the Revised Statutes Of the United
heretofore without deduction. If SO, that will
AFFORD q remedy against that part Of the recent
decision. Unot, you can, If upon consideration
It be thorgAs wise to DO so, provide against 1t
by repeating the definition OF the term credits,
as used IN the constitution, to be found in sec
ton 2730 Of the Revised Statutes Of Ohio. This
statutory definition is thought by many to be
unconstitutional. 1t has been upheld because
Of the supposed hardship of not allowing q de-
duction Of debts in making returns for taxes.
There u much to be said on both sides Of the
question. The trainers of the constitution con
Guided that no deduction should be allowed.
opposite view, which has ever since obtained.
Your attention is called to the matter only that
you may again consider 1t in view Of the serious
consequences 1t has now brought upon US in
connection with the taxation OF National bank
shares.
1t Is unfortunate that we should be compelled
uation that exist, and suffer the evil eonse-
quences thereof any longer; but It Is perhapes
best, In view OF all considerations, as you seemed
to think at your last session, to await the time
for the regular decennial appraismeut Of real
estate before having 1t regularly re-valued.
5qs 81 + that sh viii a.o som as iaast pary,a pc sei aesom IN
the special message that has been referred to,
it is recommended that a State Board of equal
ization be created to superintend the re-valuation
that wac there recommended The neCaaSfty for
such q board does not depend upon o re-valua-
ton. On the contrary, it may at least partly
board might be empowered to eaualize the ex.
isting valuations. II created, it should be given
full power to equalize county with county and
every class and kind Of property with every
other.
The action Of such a board would secure uni
sna tsys Of pv vai an a s1S !, IN th Law T,,; as Mell t as n q fact TACT
so successfully prosecuted by not only making
1t impossible, but by removing the motive for
disposition to contest o taxation that was based
on a fair and uniform valuation.
In addition to the duties Of equalization, for
which there is such pressing demand, such q
board might be of great benefit If intrusted with
a general supervision Of the whole subject of
a more eficisnt system thar now obtains for Sc,
curing the listing and taxation OF personal prop
erty.
The recommendation is repeated to provide
eign corporations doing business in Ohio. Among
these may be mentioned telephones, Transports
a eGm;n sle 81, nSgTar,,P ari9 orc car trust anu car
ton Is also repeated that the assessors Of per-
sonal property be appointed In all cities. The
recommendation is confined to cities because
the constitution requires the election Of all
township officers.
1t is believed that o large amount of mortgage
securities unjustly escapes taxation. 1t is quite
Ohio which are not listed for taxation. The ex-
cuse given when the mortgage Is applied to is
that he is only an agent for some one who is a
nonresident. In many cases this is no doubt
true, but in many others 1t is only q subterfuge
to evade taxation. This abuse might be largely
land in Ohio y snail elIi'b be- sax Yea w Siesy M tSe IanS S is
and when the tax is not paid by the mortgage, or
some one for him, the mortgagor may pay the
same, and be credited therefor double the
amount 80 paid as an inducement thereto,
as for a payment on his debt. By this method
the citizen who makes honest returns would
have no new obligation imposed upon him, and
the nonresident would only be made to pay, as
foreign corporations do, for the privilege he en-
joys In a State that owes him no special privi-
leges.
Suitable provisions should be made for secur-
ing the listing as against the several depositors
OF all deposits Of money, credits and property
with safety deposit and trust companies.
And the law governing the taxation of private
or u-nincorporated banks should be so amended as
to prevent the deduction of liabilities from cash
and cash items, bonds, stocks and securities held
as investments, as now allowed by section 2759
of the Revised Statutes of Ohio.
IL ucuuCLlOu Is uOb ailOW6u 10 any OLQ6f
class of taxpayers, and no reason is known why
it should be continued.
The following communication Is deemed i'm
portant. 1t is accordingly submitted herewith,
aud you are respectfully requested to give due
attention to the matter to which it relates:
"AuDTToR.s OFFICE, PIKE COUNT,
AVE OHIO, Nov. q, 1886.
"Ron J. B. Foraker:
"DEAR SIR . I wish to call
TO lands forfeited to the state. There are thor.
sands of acres throughout the State which are
paying no tax and have paid none for several
States that the advertisement, when the land is
advertised for sale for non-payment of taxes,
shall be such that o person can take the de-
which is impossible, In Virginia Military land.
Therefore it is impossible to issue an Auditors
deed which will give a good title.
This fact being generally known by the land.
owners, they are refusing to pay their land tax,
in q great many instances, where they are fully
able to do so, knowing il their lands are sold
purchaser pay their tax for all time to come, or
until the purchaser quits, and lets 1t go back to
the State, as several tracts have done in this
county.
ST would suggest an amendment In regard to
tax sales, giving freeholders more time to re.
deem in (say five years in place of six months),
defects by reason Of errors in description or
amount oftaX, etc., shall be cured, and the deed
then issued by the County Auditor shall be good
to dispossess and take charge OF the land. Il
the law was so amended I am satisfied that nine.
tenths Of the land now forfeited to the State
would be redeemed and the tax paid thereon,
and the other tenth would sell, thus bringing in
a large amount of tax to the State and county,
which will not and can not be collected under
the present law. There are, at the present time,
6a5 tracts of land forfeited to the State in this
county. Yours respectfully,
JAS. ARMSTRONG,
Auditor Pike County"
II these recommendations can be framed into
laws, with efficient provisions for their enforce
ment, it is believed that the unjust inequalities
that now exist can be removed, and that un.
taxed property to the value of'many millions
can be brought upon the duplicate to the great
relief of all classes OF taxpayers.
Under the provision Of the act of April II,
1885, the Commissioners of the Sinking Fund,
with the approval Of the Governor, entered into
the following contract with Albert Meter,
which was guaranteed by the Citizens National
Bank, Of Cincinnati, and is being now, through
the agency Of that bank, satisfactorily and sue
cessfully carried out:
WHEREAS, The Commissioners of the Sink.
ing Fund Of Ohio, on the 9th day of February,
1886, advertised that they would receive sealed
proposals on the 18th day of March. 1886, from
the holders of Ohio six per cent. Canal Bonds,